Connecticut Senator Chris Murphy has reintroduced a bill that would offer a federal tax credit for Angel Investors on qualifying equity investments in high tech startups. This federal bill is based upon a Connecticut bill that has generated millions for small businesses and startups in the state. The bill would give Angels a 25% tax break on equity investments of $25,000 or more in U.S. based high tech startups which would make such investments more lucrative to investors. Senator Murphy spoke about the success of the bill in Connecticut in a press release on Monday.
“Once again, Connecticut is leading the way,” said Murphy. “In just a few short years, Connecticut’s Angel Tax Credit has already generated millions of dollars in capital for startup businesses across the state, a
nd has helped create hundreds of jobs in high-growth industries, like science and technology, for our hardworking residents. Just like the HALOS Act I introduced earlier today, this Angel Tax Credit Act will make it easier for investors to back new businesses and support job creation and innovation across the nation, and I’m proud to bring this concept – which has helped so many businesses in Connecticut – to Washington.”
The bill still has a long road ahead before it could be enacted, but it certainly is a step in the right direction as Tech industries continue to grow throughout the country. You can read more about the bill and its benefits in Senator Murphy’s press release here.